The cryptocurrency market is constantly shifting, and Tron (TRX) has recently achieved a significant milestone. The total supply of Tether (USDT) issued on the Tron network has now surpassed $80 billion, solidifying its position as a leading platform for USDT issuance. This achievement comes as TRX, the native token of the Tron network, shows potential signs of a rebound. Despite a decline in overall market trading volume, technical indicators suggest underlying strength.
Tron Emerges as the Leading Platform for USDT Transfers
According to a report by CryptoQuant contributor Maartunn, the circulating supply of USDT on the Tron network officially exceeded $80 billion by mid-June. Just four years ago, this figure was less than $7 billion, highlighting its rapid growth. Notably, this expansion has remained steady through both bull and bear markets, with almost no signs of stagnation.
A key turning point occurred in November 2024 when Tron's USDT supply surpassed that of Ethereum, demonstrating its growing influence in the stablecoin market. While Ethereum still leads in Total Value Locked (TVL) in decentralized finance (DeFi), Tron has become a powerful alternative due to its low transaction fees and faster processing speeds. These advantages are particularly appealing to users in emerging markets and those operating in high-frequency trading environments like exchanges.
By mid-2025, the amount of USDT held on Tron skyrocketed from $59.76 billion to over $80.76 billion. Although data from DefiLlama shows that the Total Value Locked (TVL) on the network decreased from $7.5 billion to $4.3 billion, Tron's role as a transaction layer continues to expand. Users clearly prioritize transaction speed and cost efficiency over participating in DeFi locking protocols.
Rising Activity Despite Falling TVL
While Tron's USDT data reaches new heights, TRX's spot trading performance has been relatively modest. Over the past week, TRX's price fluctuated between $0.2605 and $0.2791. It is currently trading at approximately $0.2725, up about 2% in the last 24 hours. However, it remains significantly below its December 2024 peak of $0.4313.
A notable trend is the increase in decentralized exchange (DEX) trading volume even as TVL declines. Monthly trading volume on Tron-based DEXs increased from $4.9 billion in April to $5.5 billion in May. This suggests that despite capital flowing out of locked protocols, market trading activity is becoming more vigorous.
This may indicate that users prefer to move funds frequently rather than lock them up for yield generation, reflecting a cautious approach to market uncertainty. This phenomenon is not unique to Tron but is appearing across other blockchain networks as traders respond to changing interest rates and risk factors.
This behavior is not necessarily a sign of weakness. Instead, it may indicate that networks are becoming more agile, meeting user demand for liquidity and optionality rather than long-term locking.
Technical Indicators Suggest Potential Strength
TRX is currently in a consolidation phase, with its price hovering near key support levels as the market awaits a clearer directional move. Its price is slightly below the 20-day Simple Moving Average (SMA), often considered a psychological barrier for traders. However, TRX remains above its 10, 30, 50, and 100-day Exponential Moving Averages (EMA), indicating an overall optimistic medium to long-term trend.
The Bollinger Bands have slightly narrowed, indicating reduced volatility—a condition that often precedes a significant price movement. TRX is currently trading near the middle band of the Bollinger Bands, a neutral zone that typically signals an impending trend breakout.
The Relative Strength Index (RSI) is holding near 50, suggesting a balance between buying and selling pressure. Momentum indicators and long/short ratio metrics show a slight bullish bias, while the MACD remains in a mild bearish territory, reflecting that the market has not yet fully committed to a direction.
If TRX can break above the 20-day SMA with high volume and surpass the $0.28 resistance level, it could target moves toward $0.30 or even $0.32. Conversely, a break below $0.265 could see it test support near the lower Bollinger Band around $0.262.
What This Means for TRX
Tron's milestone of exceeding $80 billion in USDT supply underscores its expanding influence in the stablecoin sector. Despite a decline in TVL, the network continues to attract users seeking efficient, low-cost transactions, particularly in high-volume and emerging market environments.
Simultaneously, TRX's price action appears cautious but holds latent positive signals. Technical analysis suggests it is in a consolidation phase, potentially building energy for a future price move, reflecting a market at the crossroads of uncertainty and opportunity.
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Frequently Asked Questions
What is Tron (TRX)?
Tron is a blockchain-based decentralized platform designed to support smart contracts and decentralized applications (dApps). Its native cryptocurrency is TRX, which is used for transaction fees, staking, and governance on the network.
Why is Tron popular for USDT transactions?
Tron gained popularity for USDT (Tether) transactions due to its high throughput, very low transaction fees, and fast settlement times. This makes it ideal for users, especially in emerging markets, who need to move value quickly and cheaply.
What does Total Value Locked (TVL) measure?
TVL represents the total amount of assets deposited and locked in decentralized finance (DeFi) protocols on a blockchain. It is a key metric for gauging the health and usage of DeFi ecosystems.
How can I start trading or using TRX?
You can acquire TRX on most major cryptocurrency exchanges. Once you have TRX, you can hold it, trade it, use it to pay for transactions on the Tron network, or participate in staking to earn rewards. To get started, you need a compatible crypto wallet.
What is the difference between a Simple Moving Average (SMA) and an Exponential Moving Average (EMA)?
An SMA calculates the average price over a specific period equally. An EMA gives more weight to recent prices, making it more responsive to new information and recent price changes. Traders often use both for different signals.
Is a decrease in TVL always a bad sign for a blockchain?
Not necessarily. While a declining TVL can indicate capital leaving DeFi protocols, it must be considered alongside other metrics like transaction volume and active addresses. An increase in general transaction activity, as seen on Tron, can offset concerns about lower TVL.